| |
|
|
19-02-2020
Post offices have been catering to the financial needs of citizens for a while now. Because of their vast network, post offices are able to reach out to people across the country, even in rural and remote areas.
Various Savings Schemes under Post Office Investments as below
Savings account: This is similar to bank savings accounts, offering 4 per cent interest on balances. The advantage here is the minimum balance is quite small, at Rs. 500. However, if this balance is not maintained, you’ll have to shell out Rs. 100. The account offers cheque and ATM facility, and online banking is possible through Intra Operable Netbanking as well as mobile banking. These might seem a little rudimentary compared to large banks, but this is an account that works best for people in rural and remote areas, who may not have much use for online banking.
Five-year Recurring Deposit Account: If you want to save small amounts on a regular basis, a recurring deposit could work well for you. The interest offered on five-year post office deposits are at 7.2 per cent, which is what most banks offer. You can open an account for minors to inculcate the savings habit in them. You can withdraw up to 50 per cent of the balance after one year, which has to be repaid along with interest during the tenure of the account.
Time Deposit Account: This is a fixed deposit for tenures of one year (interest rate of 6.9 percent), two years (6.9 per cent), three years (6.9 per cent) and five years (7.7 per cent). You need to invest a minimum of Rs. 1,000 and in multiples of Rs. 100 thereafter. Interest is payable monthly but calculated quarterly. Five-year deposits are allowed a deduction from taxable income under Section 80C of the Income Tax Act.
Monthly Income Scheme Account: If you need a monthly income, this is a scheme you would be interested. You can invest in multiples of Rs. 1,000 up to a maximum of Rs. 4.5 lakh, or Rs. 9 lakh for a joint account. The interest rate is 7.6 per cent per annum payable monthly. This account has a maturity period of five years. It can be encashed prematurely at the end of one year at a discount (deduction from the deposit) of 2 per cent of deposit, or one per cent at the end of three years.
Senior Citizens Savings Account: This is meant for individuals over 60 years or those over 55 who have retired or taken VRS. The interest rate is at 8.6 per cent, with a maturity period of five years. Investments under this scheme are eligible to deductions under Section 80C.
National Savings Certificates (NSC): NSC is a popular choice among small investors because of the safety and tax benefits under Section 80C. You can invest a minimum of Rs. 1,000 and multiples of Rs. 100 thereafter. You get an interest rate of 7.9 per cent, compounded annually and paid at maturity at the end of five years.
Kisan Vikas Patra (KVP): This savings scheme offers an interest rate of 7.6 per cent, slightly lower than NSC, and can be enchased 2.5 years after issue. The minimum investment is Rs. 1,000, and in multiples of Rs. 100 thereafter.
Apart from these, you can also invest in Public Provident Fund (PPF) and Sukanya Samriddhi Account at the post office. |
|
|
|
|